PNOC-EC: Preparations for selling stocks now under way

To comply with the regulations of the Philippine Stock Exchange (PSE), the board of PNOC Exploration Corporation, the government's oil and gas arm, has approved the preparations for the company’s secondary stock offering. In its meeting earlier this week, the PNOC-EC board gave the go signal for the start of the preparations for the secondary offering. However, the board deferred its decision on the actual date for the offering period to determine optimal timing to ensure the highest market price for the shares. "We hope to ensure the best price for the offering so the board has not fixed the actual date for its float. Timing is important. The best conditions will be obtained for the offering so that our company will get the best and highest price possible in the global market," said Gemiliano Lopez Jr., PNOC-EC chairman and chief executive officer. "Aside from complying with PSE requirements by making the offering, PNOC Exploration will boost its capitalization, enabling it to enhance its capability to discover and develop more indigenous energy resources, like oil, coal and gas," Lopez said. PNOC-EC, as a publicly listed company, is required to have a public float of at least 10 percent of its shares of stock. At present, the public owns around 0.29 percent of PNOC-EC stocks while the government, through Philippine National Oil Company, owns the remaining 99.71 percent. Lopez said the preparations for the selling of stocks could last between six to eight months. PNOC-EC said the process for the hiring of the company’s financial advisor/lead underwriter is already in full swing. The invitations for interested and potential parties will also be sent out in the next couple of days, the company said. Leading international banks have already manifested interest in managing the float in the world market. PNOC-EC has set a P5.6 billion capital expenditure for 2011 to finance its petroleum, oil and gas, and coal projects, among others. – VVP/OMG, GMA News